Quaker State Inc. offers a new employee a lump sum signing bonus at the date of employment.

Alternatively, the employee can take $8,000 at the date of employment plus $20,000 at the end of each of

his first three years of service. Assuming the employee's time value of money is 10% annually, what lump

sum at employment date would make him indifferent between the two options?

A. $62,711

B. $57,737

C. $8,000

D. $23,026